The Hour Between Dog and Wolf: Risk Taking, Gut Feelings and the Biology of Boom and Bust

By John Coates

Categories: Business & Money, Science & Math

Former Wall Street trader turned neuroscientist John Coates explains how the body's chemistry affects risk taking in financial markets. He shows how hormones such as testosterone and cortisol rise and fall with winning and losing streaks, making traders overconfident in booms and fearful in busts. Coates argues that understanding the biology of risk can help explain market instability and suggests ways to manage it.

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• Shane Parrish: “Books Everyone Should Read on Psychology and Behavioral Economics … I wanted to choose books that these military leaders wouldn’t normally have come across in everyday life. Books they were unlikely to have read. Books that offered perspective. — The Hour Between Dog and Wolf: Risk Taking, Gut Feelings and the Biology of Boom and Bust by John Coates”